Menu

Leave a Message

Thank you for your message. We will be in touch with you shortly.

Homes for Sale in Kahului, HI

Real Estate

What Credit Score Do You Really Need To Buy a Home

07/30/25

Most Buyers Overestimate the Number—Here’s What You Actually Need To Know

What Credit Score Do You Really Need To Buy a Home?

Most Buyers Overestimate the Number—Here’s What You Actually Need To Know

 

According to Fannie Mae, 90% of buyers don’t actually know what credit score lenders are looking for, or they overestimate the minimum needed.

 

Let that sink in. That means most homebuyers think they need better credit than they actually do – and maybe you’re one of them. And that could make you think buying a home is out of reach for you right now, even if that’s not necessarily true. So, let’s look at what the data really says about credit scores and homebuying.

 

There’s No One Magic Number

 

There’s no universal credit score you absolutely have to have when buying a home. And that means there’s more flexibility than most people realize. Check out this graph showing the median credit scores recent buyers had among different home loan types:

 

 

Here's what’s important to realize. The numbers vary, and there’s no one-size-fits-all threshold. And that could open doors you thought were closed for you. The best way to learn more is to talk to a trusted lender. As FICO explains:

 

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

 

Why Your Score Still Matters

 

When you buy a home, lenders use your credit score to get a sense of how reliable you are with money. They want to see if you typically make payments on time, pay back debts, and more.

 

Your score can impact which loan types you may qualify for, the terms on those loans, and even your mortgage rate. And since mortgage rates are a big factor in how much house you’ll be able to afford, that may make your score feel even more important today. As Bankrate says:

 

“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

 

That still doesn’t mean your credit has to be perfect. Even if your credit score isn’t as high as you’d like, you may still be able to get a home loan.

 

Want To Boost Your Score? Start Here

 

And if you talk to a lender and decide you want to improve your score (and hopefully your loan type and terms too), here are a few smart moves according to the Federal Reserve Board:

 

  • Pay Your Bills on Time: This is a big one. Lenders want to see you can reliably pay your bills on time. This includes everything from credit cards to utilities and cell phone bills. Consistent, on-time payments show you’re a responsible borrower.

 

  • Pay Down Your Debt: When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible. That makes you a lower-risk borrower in the eyes of lenders – making them more likely to approve a loan with better terms.

 

  • Review Your Credit Report: Get copies of your credit report and work to correct any errors you find. This can help improve your score.

 

  • Don’t Open New Accounts: While it might be tempting to open more credit cards to build your score, it’s best to hold off. Too many new credit applications can lead to hard inquiries on your report, which can temporarily lower your score.

 

Bottom Line

 

Your credit score doesn’t have to be perfect to qualify for a home loan. But a better score can help you get better terms on your home loan. The best way to know where you stand and your options for a mortgage is to connect with a trusted lender.​

Other Recent Blogs

Check out the latest articles on real estate trends.

The Best Steakhouses in Atlanta You Need to Try

The Best Steakhouses in Atlanta You Need to Try

08/22/25

From classic favorites to modern hotspots, here’s your guide to Atlanta’s top steakhouses

Real Estate

Condos Could Be a Smart Move for Today’s Buyers

Condos Could Be a Smart Move for Today’s Buyers

08/21/25

Why growing inventory and softer prices make condos worth considering

Real Estate

More Contracts Are Falling Through. Here’s How To Get Ahead

More Contracts Are Falling Through. Here’s How To Get Ahead

08/20/25

Why inspections, repairs, and preparation matter more than ever in today’s housing market

Real Estate

Is It Better To Buy Now or Wait for Lower Mortgage Rates? Here’s the Tradeoff

Is It Better To Buy Now or Wait for Lower Mortgage Rates? Here’s the Tradeoff

08/19/25

Why today’s market may offer a hidden opportunity for homebuyers

Lifestyle

Atlanta Weekend Guide August 15 – 17, 2025

Atlanta Weekend Guide August 15 – 17, 2025

08/16/25

Your quick guide to the best art, music, and market events happening this weekend in Atlanta

Real Estate

How Technology Is Changing Homebuying in North Buckhead

How Technology Is Changing Homebuying in North Buckhead

08/15/25

Exploring the Impact of Tech Innovations on the North Buckhead Real Estate Market

Real Estate

Home Design Trends in Garden Hills, GA

Home Design Trends in Garden Hills, GA

08/13/25

Exploring the Latest Styles and Innovations in Garden Hills Home Design

Real Estate

Are These Myths About Buying a Newly Built Home Holding You Back

Are These Myths About Buying a Newly Built Home Holding You Back

08/13/25

Debunking the top misconceptions so you can explore new construction with confidence

Real Estate

Almost Half of Home Sellers Are Making Concessions

Almost Half of Home Sellers Are Making Concessions

08/12/25

Why flexibility is becoming a winning strategy in today’s housing market